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Australia's cybersecurity crisis: unencrypted data creates a haven for hackers, says Apple

Published 08/12/2023, 11:21 am
Updated 08/12/2023, 12:00 pm
© Reuters.  Australia's cybersecurity crisis: unencrypted data creates a haven for hackers, says Apple
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A recent study commissioned by Apple (NASDAQ:AAPL) from the Massachusetts Institute of Technology (MIT) has highlighted a worrying trend in cyber security, particularly in Australia.

Despite Apple's significant expansion of its data-encryption practices and the launch of Advanced Data Protection for iCloud, cyber attacks have not abated.

In fact, data breaches have escalated with more occurring in September this year than throughout the entirety of 2022.

Australia - top four global targets

The MIT research places Australia among the top four global targets for hackers, trailing only behind the United States, the United Kingdom and Canada.

Notable cyber attacks in Australia have compromised major firms including Medibank, Optus, Latitude Financial and Australian Clinical Labs.

The severity of these breaches is underscored by the exposure of sensitive customer information, including health records and personal details, on the dark web.

Advocates for encrypted storage of personal data

Stuart Madnick, MIT professor of information technology, emphasised the risk posed by companies storing sensitive data in a non-encrypted, readable format: "As long as organisations keep collecting troves of unencrypted personal data, hackers are motivated to keep finding new ways to get it," he said.

He advocates for a reduction in the amount of personal data stored in readable format and an increase in efforts to protect sensitive consumer data.

The MIT report reveals a threefold increase in consumer data breaches from 2013 to 2022, with a staggering 2.6 billion personal records compromised in 2023 alone.

Cloud infrastructure attacks nearly doubled from 2021 to 2022, accounting for over 80% of breaches.

No backdoors for Apple

Apple, in response to these threats, has tightened its data security, much to the chagrin of law enforcement agencies.

The company asserts that it has never created a backdoor to its products or services, nor has it allowed government direct access to its servers.

This stringent security approach has made it challenging to comply with law enforcement requests for data access.

Mobile phones - primary target

Mobile phones, a primary target for hackers, contain a wealth of personal information.

Apple's iCloud employs end-to-end encryption for 14 sensitive data categories by default, and for 23 categories with Advanced Data Protection enabled.

Julie Inman Grant, eSafety Commissioner, acknowledges the complexity of the issue, stating that while companies operating end-to-end encrypted services are not exempt from responsibility, there is no expectation for them to design systematic vulnerabilities into their services.

She cited Meta's WhatsApp as an example of a service that proactively worked to combat online abuse without breaking encryption.

This situation underscores the pressing need for robust cyber security measures and responsible data management practices to safeguard against the growing threat of cyber attacks.

Read more on Proactive Investors AU

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